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Raise Targets, Closing, and Minimums
Raise Targets, Closing, and Minimums

What is a closing minimum and why do some campaigns include minimums?

Updated over a week ago

Raise Targets

Companies can still close without hitting their goal/target, as long as they hit their closing minimum. If a company has a closing minimum that they do not reach by the closing date, FrontFundr will return all funds to investors. Closing minimums, if applicable, can be found in a company's Offering Document.

There may be some individuals that will have their investments accepted by the issuing company, without the minimum being achieved. In those instances, applicable investors will be notified and asked for approval.

Closing Minimums

There are multiple reasons for a raise to have a closing minimum associated with their campaign:

  • A company may elect to have a closing minimum due to a minimum capital requirement for their intended purpose (e.g.. a marketing campaign, facility expansion, etc.)

  • In other circumstances, our team may require a minimum to be hit if the company is an early-start up, as a means of investor protection. If the company does not raise sufficient funds to achieve their goal they are raising for, they would not accept funds from investors, as it puts their investments at an unnecessarily high risk of loss.

A company’s use of funds will be detailed in the offering materials. If a company does not have a closing minimum they will be able to close on all investments received.

On a company’s campaign page, there is a tracker that indicates the value of investments that have been completed, the percent of their target raise amount achieved, and the maximum they can raise. Please note that a company does not need to achieve 100% of their target raise goal in order for your investment to be processed - your investment can be accepted by the company as long as the closing minimum is achieved.

Rolling Closes

Companies not using the Crowdfunding Exemption, subject to any minimum raise that may be required, can elect to conduct closings at their discretion. This is commonly seen with companies that distribute a monthly dividend, such as Mortgage Funds, MICs and REITs, where they will close investors on a monthly basis.

To find out if the closing date on the campaign page is for the monthly close, or final close, please email

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